US Treasury yields move lower as trade war talks continue

US Treasury yields move lower as trade war talks continue

U.S. government debt prices were higher on Monday morning, after robust jobs data and a dovish turn from the Federal Reserve helped to alleviate concerns of a possible economic slowdown.

The yield on the benchmark 10-year Treasury note, which moves inversely to price, was lower at around 2.6481 percent, while the yield on the 30-year Treasury bond was also lower at 2.9531 percent.

Market participants are likely to turn their attention to trade talks between Chinese officials and their U.S. counterparts early this week. According to Reuters, the Chinese foreign ministry said Monday that China and the U.S. have expressed an eagerness to work together. The ministry also added China stands ready to resolve trade disputes with the U.S. on equal footing.

President Donald Trump said Sunday that the talks were going well and weakness in the Chinese economy gave Beijing an extra incentive to work toward a resolution.

It comes after U.S. payrolls data published Friday showed 312,000 jobs were created in December. Economists surveyed by Dow Jones had been expecting job growth of just 176,000.

Federal Reserve Chairman Jerome Powell also sought to ease market concerns of slowing growth in the world’s largest economy, saying the U.S. central bank would be “patient” and flexible with policy decisions this year.

On the data front, ISM non-manufacturing figures for December are expected to be released at around 10:00 a.m. ET.

Meanwhile, the U.S. Treasury is set to auction $39 billion in 13-week bills and $36 billion in 26-week bills on Monday.

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